Aramco sells up to 78,000t of fuel oil

Saudi Aramco sold 70,000-78,000 tonnes of 650-centistoke (cst) fuel oil, for early-June loading from Yanbu, into the Middle East at steady price levels, traders said yesterday.

The parcel, for June 4-6 lifting from the joint-venture Samref plant with ExxonMobil, was sold to a Middle East trader at a discount of about $23 a tonne to Singapore spot quotes on free-on-board basis.

"It's done at similar levels to the ExxonMobil cargo just a few days earlier. As was the case then, there wasn't very much buying interests from buyers in Singapore," a Singapore-based Asian trader said.

"Despite the stronger forward numbers in the swaps market, it's still pretty weak here and not many players are willing to take positions on physical cargoes."

ExxonMobil sold a similar parcel, for May 30-June 2 lifting, to Middle East trader Fal Oil at a discount of $23 to $24 a tonne to Singapore spot quotes.

Reflecting the poor sentiment, Aramco had cancelled its offer for an A961, 180-cst cargo, for May 20-22 lifting from Ras Tanura, FOB, due to poor price bids. It has issued a tender, offering 50,000-53,000 tonnes of straight-run, long-residue 380-cst for June 1-3 lifting from its Sasref plant in Jubail, FOB.

May supplies from Saudi Arabia, totalling 350,000-400,000 tonnes, were thinner.

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